We have audited the attached Balance Sheet of MAHAMAYA STEEL INDUSTRIES
 LIMITED, (the Company) as at 31st March. 2012. the Profit & Loss
 Account and the Cash Flow Statement (financial statements) of the
 Company for the year ended on that date annexed thereto signed by us
 under reference to this report. These financial statements are the
 responsibility of the Company''s Management. Our responsibility is to
 express an opinion on these financial statements, based on our audit.
 
 1.  We conducted our audit in accordance with the Auditing Standards
 generally accepted in India. Those Standards require that we plan and
 perform the audit to obtain reasonable assurance about whether the
 financial statements are free from material misstatements An audrt
 includes examining on a test basis, evidence supporting the amounts and
 disclosures in the financial statements. An audit also includes
 assessing the accounting principles used and significant estimates made
 by the Management, as well as evaluating the overall financial
 statement presentation. We believe that our audit provides a reasonable
 basis for our opinion.
 
 2.  As required by the Companies (Auditors Report) Order, 2003 (as
 amended) issued by the Government of India, in terms of section
 227(4A). of the Companies Act. 1956 and on the basis of such checks as
 we considered appropriate and according to information and explanation
 given to us, we enclose in the annexure hereto a statement on the
 matters specified in paragraphs 4 and 5 of the said order.
 
 3.  Further to our comments in the annexure referred to in paragraph 2
 above, we report that:
 
 a) We have obtained all the information and explanations, which to the
 best of our knowledge and belief were necessary for the purposes of our
 audit;
 
 b) In our opinion, proper books of account as required by law have been
 kept by the Company so far as appears from our examination of those
 books;
 
 c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
 dealt with by this report are m agreement with the books of account;
 
 d) In our opinion, the Balance Sheet. Profit & Loss Account and Cash
 Flow Statement dealt with by this report, read together with
 Significant Accounting Policies and Notes there on, except for
 accounting standard 15. (for detail please refer note 1 policy no 13 of
 notes on accounts), are in compliance with the Accounting Standards
 referred to In Section 211 (3C) of the Companies Act 1956;
 
 e) We draw attention towards Note on Account 30 (a) and (b) dealing
 with treatment of venation observed during search by Income Tax
 department and Excise department respectively.
 
 f) Based on written representations made by Directors of the Company,
 taken on record by the Board of Directors, and the information and
 explanations made available to us.  we repot that none of the director
 is prima facie disqualified as on March 31.2012 from being appointed as
 a director in terms of sec. 274 (1)(g) of the Companies Act, 1956.
 
 g) In our opinion and to the best of our information and according to
 explanations given to us. the said accounts read together with
 Significant Accounting Policies and Notes there on. but subject to para
 (d) and (e) above, give the information required by the Companies Act
 1956. in the manner so required, give a true and fair view in
 conformity with the accounting principles generally accepted in India:
 
 (i) in the case of Balance Sheet, of the state of affairs of the
 Company as at 31st March 2012;
 
 (ii) in the case of Profit & Loss Account, of the Profit for the year
 ended on that date; and
 
 (iii) in case of Cash Row Statement, of the cash flows for the year
 ended on that date.
 
 ANNEXURE TO AUDITORS REPORT
 
 RE: MAHAMAYA STEEL INDUSTRIES LIMITED
 
 REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE:
 
 1.  In respect of its fixed assets:
 
 a.  The company has maintained proper records showing full particulars
 including quantitative details and situation of fixed assets.
 
 b.  As explained to us, fixed assets have been physically verified by
 the management under a phased programme of verification, which in our
 opinion is reasonable, having regard to the size of the Company and
 nature of its assets. As informed to us. no maternal discrepancies were
 noticed on such physical verification.
 
 c.  The Company has not disposed off substantial part of fixed assets
 during the year and the going concern status of the Company is not
 affected.
 
 2.  In respect of its inventories:
 
 a.  As explained to us, inventories were physically verified during the
 year by the management at reasonable intervals.
 
 b.  In our opinion and according to the Information and explanations
 given to us. the procedures of physical verification of inventories
 followed by the management were reasonable and adequate in relation to
 the size of the Company and the nature of its business.
 
 c.  The Company has maintained proper records of inventories. As
 explained to us. there was no material discrepancies noticed on
 physical verification of inventory as compared to the book records.
 However, we draw attention to note no 30 a and b of notes on accounts
 dealing with search operations conducted by Income tax department and
 Excise department, during the year under review the company has
 contested variation pointed out by Income Tax department and Excise
 department. While no entry in books of accounts have been made in
 respect of differences pointed out by Income Tax department, it has
 given effect to differences pointed out by the Excise Department.
 
 3.  In respect of the loans, secured or unsecured, granted or taken by
 the company to / from companies, firm or other parties covered in the
 register maintained under Section 301 of the Companies Act. 1956:
 
 a.  The Company has granted loan of Rs. 17.00 lacs during the year to
 one Company. There was no outstanding balance as at 31st March, 2012.
 
 b.  In our opinion and according to the information and explanations
 given to us. the rate of interest, wherever applicable and other terms
 and conditions are not prima facie prejudicial to the interest of the
 Company.
 
 c.  There is no overdue amount in respect of loans granted by the
 Company
 
 d.  The company has taken loan of Rs. 1.535.00 lacs during the year
 from three companies.  There was no outstanding balance as at 31 ''
 March 2012.
 
 e.  In our opinion and according to the information and explanations
 given to us. the rate of interest, wherever applicable and other terms
 and conditions are not prima facie prejudicial to the interest of the
 Company.
 
 f.  There is no overdue amount in respect of loans taken by the
 Company.
 
 4.  In our opinion and according to the information and explanations
 given to us. there are adequate internal control procedures
 commensurate with the size of the Company and the nature of its
 business for the purchases of inventory, fixed assets and also for the
 sale of goods and services. During the course of our audit, we have
 neither come across nor have been informed of any continuing failure to
 correct major weaknesses in internal control systems.
 
 5.  In respect of transactions covered under Section 301 of the
 Companies Act. 1956:
 
 a.  In our opinion and according to the information and explanations
 given to us. the transactions made in pursuance of contracts or
 agreements, that needed to be entered into the register maintained
 under Section 301 of the Companies Act. 1956 have been so entered
 
 b.  In our opinion and according to the information and explanations
 given to us.  transactions in pursuance of contracts or agreements,
 entered m the register maintained under Section 301 of the Companies
 Act. 1956 aggregating during the year to Rs.5.00,000/- (Rupees Five
 Lacs) or more in respect of any party in the said financial year are
 prima facie reasonable having regard to the prevailing market prices at
 the relevant time.
 
 6.  According to the information and explanations given to us, the
 Company has not accepted any deposits from the public. Therefore the
 provisions of clause 4 (vi) of the Companies (Auditor s Report) Order.
 2003 are not applicable to the Company.
 
 7.  In our opinion, the internal audit system of the Company is
 commensurate with its size and nature of its business
 
 8.  The cost records pursuant to the Companies (Cost Accounting
 Records) Rules. 2011 prescribed by the Central Government under section
 209(1 )(d) of the Companies Act 1956 have not been seen by us. We have
 been informed that applicable cost audit of such records is still in
 progress.
 
 9.  a. According to the records of the Company and based on information
 and explanations made available to us. undisputed statutory dues
 including Provident Fund. Investor Education and Protection Fund (if
 any). Employees'' State Insurance. Income-Tax.  Sales-Tax, Commercial
 Tax. Wealth Tax. Service Tax. Customs Duty, Excise Duty, Cess and other
 statutory dues have been generally regularly deposited with the
 appropriate authorities (if any). According to the information and
 explanations given to us. no undisputed amounts of nature mentioned
 above payable in respect of the aforesaid dues were outstanding as at
 31st March. 2012 for a period of more than six months from the date of
 becoming payable,
 
 b.  The disputed statutory dues aggregating to Rs.24.80 Lacs, that have
 not been deposited on account of matters pending before the appropriate
 authorities are as under:
 
 SI.   Name of              Nature of                Amount 
 No.   the Statute          the Dues                (Rs. In Lacs)
 
 01.   Sales Tax            Sales/                       4.98 
       Statue of            Commercial Tax
       the State
 
 02.   Central              Excise Duty                  0.90
       Excise Act. 1944
 
 03.   Central              Excise Duty                 18.92
       Excise Act. 1944
 
                            TOTAL                       24.80
 
 Name of the State      Period to which     Forum where
                        the amount          dispute is
                        relates             pending
 
 Sales Tax Statue of
 the State              1990-1991           Before the High Court of 
                                            Chhattisgarh, Bilaspur
 
 Central Excise 
 Act, 1944              2006-2007           Central Excise and Service 
                                            Tax Appellate Tribunal
 
 Central Excise 
 Act, 1944              2005-2006           Asset Commissioner
 
                        2006-2007          (Appeal)
 
                        2007-2008
 
 10.  The Company does not have accumulated losses at the end of the
 financial year. The Company has not incurred cash losses during the
 financial year covered by the audit and in the immediately preceding
 financial year.
 
 11.  In our opinion and according to the information and explanations
 given to us. the company has not defaulted in repayment of dues to any
 Financial Institution or Bank.
 
 12.  In our opinion and according to the information and explanations
 given to us. no loans and advances have been granted by the Company on
 the basis of security by way of pledge of shares, debentures and other
 securities.
 
 13.  In our opinion, the Company is not a chit fund or a nidhi/mutual
 benefit fund/society.  Therefore, clause 4(xiii) of the Companies
 (Auditor''s Report) Order 2003 (as amended) is not applicable to the
 Company.
 
 14.  The Company has maintained proper records of the transactions and
 contracts in respect of dealing or trading in shares, secunties,
 debentures and other investments and timely entries have been made
 therein. All shares have been held by the Company In its own name.
 
 15.  As informed to us. the Company has not given any guarantees for
 loan taken by a body corporate from banks or any other financial
 institutions
 
 16.  As Informed to us. the Company has raised new term loans from
 banks during the year. The term loans outstanding at the beginning of
 the year and those raised during the year have been applied for the
 purposes for which they were raised.
 
 17.  According to the information and explanations given to us and on
 an overall examination of the Balance Sheet of the Company, we are of
 the opinion that the Company has not utilized money from short-term
 sources towards repayment of long-term borrowings acquisition of fixed
 assets and for long term investments.
 
 18.  During the year, the Company has not made preferential allotment of
 preference shares to parties and Companies covered in the Register
 maintained under Section 301 of the Companies Act. 1956.
 
 19.  According to (he information and explanation given to us. during
 the year covered by our audit report, the company has not issued any
 debentures.
 
 20.  During the year covered by our adult report, the company has not
 raised money by way of public issue.
 
 21.  To the best of our knowledge and belief and according to the
 information and explanations given to us. no material fraud on or by
 the Company has been noticed or reported during the year, that causes
 the financial statements to be materially misstated.
 
 Place: Raipur                   For. BATRA DEEPAK & ASSOCIATES
 
 Date: 13th August. 2012         CHARTERED ACCOUNTANTS
 
                                (Registration No.005408C)
 
                                (DEEPAK BATRA)
 
                                 PARTNER
 
                                 Membership No.74052